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Calculate the debt ratio for Company III, given its total liabilities of $900,000 and total assets of $3,500,000. Explain the debt ratio as a measure

Calculate the debt ratio for Company III, given its total liabilities of $900,000 and total assets of $3,500,000. Explain the debt ratio as a measure of a company's financial leverage and risk, indicating the proportion of assets financed by debt relative to total assets. Discuss the significance of a high or low debt ratio in evaluating a company's solvency, financial stability, and its implications for capital structure decisions and creditworthiness.

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